Report Title:

Campaign Spending; Campaign Contributions; Limitations

Description:

Establishes limits for campaign contributions to candidates, noncandidate committees, and political parties during specified election periods. Requires excess contributions to be returned to the original donor within thirty days of receipt of the donation, or the funds will escheat to the Hawaii election campaign fund. Limits contributions from nonresident individuals and entities to no more than thirty percent of the total contributions received by a candidate or candidate's committee in an election period. Defines "surplus funds" and "residual funds". Requires candidates for the Senate, House of Representatives, and the Office of Hawaiian Affairs to file campaign reports by electronic means beginning in 2006. Provides that a candidate does not have to file an organizational report if the candidate is seeking election to the same office in successive elections and does not have new information that must be updated in the report. Expands the public financing law and matches $2 for every $1 raised in excess of the minimum amount of qualifying campaign contributions needed to receive public funding. (HB1747 HD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

1747

TWENTY-THIRD LEGISLATURE, 2005

H.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to campaigns.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 11, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§11- Limit on contributions from nonresident individuals and persons. Contributions from individuals who are not a resident of the state at the time the contributions are made or from any person, including a noncandidate committee organized under the laws of another state, resident in another state, or whose participants are not residents at the time the contributions are made, shall not exceed thirty per cent of the total contributions received by a candidate or candidate's committee during the election period."

SECTION 2. Section 11-191, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

""Residual funds" or "surplus funds" means unspent money from contributions held by a candidate or committee after a general or special election and after all campaign expenditures have been paid for the election period."

SECTION 3. Section 11-194, Hawaii Revised Statutes, is amended to read as follows:

§11-194 Registration. (a) Each candidate, committee, or party shall file an organizational report as set forth in section 11-196[,] or [section] 11-196.5 as applicable[, within ten days from the date a candidate or candidate committee receives any contributions or makes any expenditures, the aggregate amount of which is more than $100, or, within ten days from the date a noncandidate committee receives any contributions or makes any expenditures, the aggregate amount of which is more than $1,000].

(b) Committees that form within ten days of [an] any election and expend in the aggregate more than $1,000 shall register and fully disclose the expenditure by 4:30 p.m. on the last calendar day prior to the expenditure.

(c) Each candidate who files nomination papers for office with the chief election officer or county clerk shall file an organizational report within ten days of [filing.]:

(1) Filing the nomination papers for office; or

(2) The date the candidate or candidate's committee receives contributions or makes expenditures that amount to more than $100 in the aggregate.

(d) A candidate who is seeking election to the same office in successive elections and is not required to report any change in information submitted in an organizational report pursuant to section 11-196(b) shall not be required to file an organizational report under this section; provided that the candidate has not sought election to any other office during the period between elections.

(e) A noncandidate committee shall file an organizational report within ten days from receiving contributions or making expenditures that amount to more than $1,000, in the aggregate, in a two-year election period."

SECTION 4. Section 11-195, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:

"(f) For purposes of this subpart, whenever a report is required to be filed with the commission, "filed" means received in the office of the commission or county clerk, whichever is applicable, by the date and time specified for the filing of the report; except that a candidate or the committee of a candidate who is seeking election to the [office of]:

(1) [Governor;] Office of governor;

(2) [Lieutenant governor;] Office of lieutenant governor;

(3) [Mayor;] Office of mayor;

(4) [Prosecuting attorney; or] Office of prosecuting attorney;

(5) [County council;] Office of county council;

(6) Senate;

(7) House of representatives; or

(8) Office of Hawaiian affairs;

shall file by electronic means in the manner prescribed by the commission. Candidates for the offices named in this subsection with contributions or expenditures of less than $5,000 need not file by electronic means. A candidate or committee without access to a computer or the Internet may request a waiver from electronic filing from the commission."

SECTION 5. Section 11-204, Hawaii Revised Statutes, is amended to read as follows:

"§11-204 Campaign contributions; limits as to persons. [(a)

(1) No person or any other entity shall make contributions to:

(A) A candidate seeking nomination or election to a two-year office or to the candidate's committee in an aggregate amount greater than $2,000 during an election period;

(B) A candidate seeking nomination or election to a four-year statewide office or to the candidate's committee in an aggregate amount greater than $6,000 during an election period; and

(C) A candidate seeking nomination or election to a four-year nonstatewide office or to the candidate's committee in an aggregate amount greater than $4,000 during an election period.

These limits shall not apply to a loan made to a candidate by a financial institution in the ordinary course of business.

(2) For purposes of this section, the length of term of an office shall be the usual length of term of the office as unaffected by reapportionment, a special election to fill a vacancy, or any other factor causing the term of the office the candidate is seeking to be less than the usual length of term of that office.

(b)] (a) No person or any other entity shall make contributions to a candidate in an aggregate amount greater than $500 during an election period. This limit shall not apply to a loan made to a candidate by a financial institution in the ordinary course of business.

(b) No person or any other entity shall make contributions in an aggregate amount greater than $25,000 to any number of candidates or noncandidate committees in an election period. This limit shall not apply to a loan made to a candidate by a financial institution in the ordinary course of business.

(c) No person or any other entity shall make contributions to a noncandidate committee, in an aggregate amount greater than [$1,000] $500 in an election[; except that in the case of a corporation or company using funds from its own treasury, there shall be no limit on contributions or expenditures to the corporation or company noncandidate committee].

(d) A noncandidate committee’s contribution limits to a candidate shall be the same as those for a person or any other entity.

[(c)] (e) A candidate's immediate family, in making contributions to the candidate's campaign, shall be exempt from the above limitation, but shall be limited in the aggregate to $50,000 in any election period. The aggregate amount of $50,000 shall include any loans made for campaign purposes to the candidate from the candidate's immediate family.

[(d)] (f) A contribution by a dependent minor shall be reported in the name of the minor but shall be counted against the contribution of the minor's parent or guardian.

[(e)] (g) Any candidate, candidate's committee, or committee that receives in the aggregate more than the applicable limits set forth in this section in any primary, initial special, special, or general election from a person, shall be required to [do one of the following:

(1) Regardless of whether the excess donation was inadvertently made, to transfer an amount equal to any excess over the limits established in this section to the Hawaii election campaign fund within thirty days of receipt of the contribution, and in any event, no later than thirty days upon the receipt by a candidate, candidate's committee, or committee, of notification from the commission; or

(2) If the excess donation was inadvertently made, to return to the donor any excess over the limits established in this section and to notify the commission within thirty days of receipt of the contribution.]

return any excess contribution to the original donor within thirty days from receipt of the excess contribution. Any excess contribution not returned to the original donor within thirty days shall escheat to the Hawaii election campaign fund.

A candidate, candidate's committee, or committee who complies with this subsection prior to the initiation of prosecution shall not be subject to any penalty under section 11-228.

[(f)] (h) All payments made by a person or political party whose contributions or expenditure activity is financed, maintained, or controlled by any corporation, labor organization, association, political party, or any other person or committee, including any parent, subsidiary, branch, division, department, or local unit of the corporation, labor organization, association, political party, political committees established and maintained by a national political party, or any other person, or by any group of those persons shall be considered to be made by a single person or political party.

[(g)] (i) A contribution made by two or more corporations shall be treated as one person when such corporations:

(1) Share the majority of members of their boards of directors;

(2) Share two or more corporate officers;

(3) Are owned or controlled by the same majority shareholder or shareholders; or

(4) Are in a parent-subsidiary relationship.

[(h)] (j) An individual and any general partnership in which the individual is a partner, or an individual and any corporation in which the individual owns a controlling interest, shall be treated as one person.

[(i)] (k) No committee [which] that supports or opposes a candidate for public office shall have as officers individuals who serve as officers on any other committee [which] that supports or opposes the same candidate. No [such] committee shall act in concert with, or solicit or make contributions on behalf of, any other committee.

[(j)] (l) No contributions or expenditures shall be made to or on behalf of a candidate or committee by a foreign national or foreign corporation, including a domestic subsidiary of a foreign corporation, a domestic corporation that is owned by a foreign national, or a local subsidiary where administrative control is retained by the foreign corporation, and in the same manner prohibited under 2 United States Code section 441e and 11 Code of Federal Regulations [110.4(a) and 110.9(a),] 110.20, as amended. No foreign-owned domestic corporation shall make contributions where:

(1) Foreign national individuals participate in election-related activities such as decisions concerning the making of contributions or the administration of a political committee; or

(2) The contribution funds are not domestically-derived.

[(k)] (m) No person or any other entity [other than political committees established and maintained by a national political party] shall make contributions to a political party in an aggregate amount greater than [$25,000] $10,000 in any two-year election period. [No political committee established and maintained by a national political party, shall make contributions to a political party in an aggregate amount greater than $50,000 in any two-year election period.

(l) Except for subsection (j), this] (n) This section shall not apply to ballot issue committees."

SECTION 6. Section 11-218, Hawaii Revised Statutes, is amended to read as follows:

"§11-218 Candidate funding; amounts available. (a) The maximum amount of public funds available to a candidate for the office of governor, lieutenant governor, or mayor in any election shall not exceed ten per cent of the total expenditure limit as determined under section 11-209 for each election [as established] for each office listed in this subsection [pursuant to section 11-209].

(b) For the office of state senator, state representative, county council member, and prosecuting attorney, the maximum amount of public funds available to a candidate in any election shall be fifteen per cent of the total expenditure limit as determined under section 11-209 for each election [as established] for each office listed in this subsection [pursuant to section 11-209].

(c) For the office of Hawaiian affairs, the maximum amount of public funds available to a candidate shall not exceed $1,500 in any election year.

[(c)] (d) For the board of education [and all other offices,], the maximum amount of public funds available to a candidate shall not exceed $100 in any election year.

[(d)] (e) Each candidate who qualified for the maximum amount of public funding in any primary [or special primary] election and who is a candidate for a subsequent general election shall apply with the commission to be qualified to receive the maximum amount of public funds as provided in this section for the respective election. For purposes of this section qualified means meeting the qualifying campaign contribution requirements of section 11-219."

SECTION 7. Section 11-219, Hawaii Revised Statutes, is amended to read as follows:

"§11-219 Qualifying campaign contributions; amounts. As a condition of receiving public funds for a primary[, special primary,] or general election, a candidate shall not be unopposed in any election for which public funds are sought, and shall have filed an affidavit with the commission pursuant to section 11-208 to voluntarily limit the candidate's campaign expenditures and shall be in receipt of the following sum of qualifying campaign contributions from individual residents of Hawaii [for the candidate's respective office for each election]:

(1) For the office of governor--qualifying contributions that in the aggregate, exceed $100,000;

(2) For the office of lieutenant governor--qualifying contributions that in the aggregate, exceed $50,000;

(3) For the office of mayor for each respective county:

(A) County of Honolulu--qualifying contributions that in the aggregate, exceed $50,000;

(B) County of Hawaii--qualifying contributions that in the aggregate, exceed $15,000;

(C) County of Maui--qualifying contributions that in the aggregate, exceed $10,000; and

(D) County of Kauai--qualifying contributions that in the aggregate, exceed $5,000; and

(4) For the office of prosecuting attorney for each respective county:

(A) County of Honolulu--qualifying contributions that in the aggregate, exceed $30,000;

(B) County of Hawaii--qualifying contributions that in the aggregate, exceed $10,000; and

(C) County of Kauai--qualifying contributions that in the aggregate, exceed $5,000;

(5) For the office of county council--for each respective county:

(A) County of Honolulu--qualifying contributions that in the aggregate, exceed $5,000;

(B) County of Hawaii--qualifying contributions that in the aggregate, exceed $1,500;

(C) County of Maui--qualifying contributions that in the aggregate, exceed $5,000; and

(D) County of Kauai--qualifying contributions that in the aggregate, exceed $3,000;

(6) For the office of state senator--qualifying contributions that, in the aggregate, exceed $2,500;

(7) For the office of state representative--qualifying contributions that, in the aggregate, exceed $1,500; [and]

(8) For the office of Hawaiian affairs--qualifying contributions that, in the aggregate, exceed $1,500; and

[(8)] (9) For all other offices, qualifying contributions that, in the aggregate, exceed $500."

SECTION 8. Section 11-220, Hawaii Revised Statutes, is amended to read as follows:

"§11-220 Eligibility for payments. (a) To be eligible to receive payments under section 11-217, a candidate shall in writing:

(1) Agree to obtain and furnish to the commission any evidence of the campaign expenses of such candidate which the commission may request;

(2) Agree to keep and furnish records, books, and other information which the commission may request; and

(3) Agree to an audit and examination by the commission under section 11-225 and to pay any amounts required to be paid pursuant to [such] that section.

(b) To be eligible to receive payments pursuant to section 11-217, a candidate shall certify to the commission that:

(1) [Such] The candidate and all committees authorized by [such] the candidate shall not incur campaign expenses in excess of the expenditure limitations imposed by section 11-209;

(2) [Such] The candidate has qualified to be on the election ballot in a primary[, special primary,] or general election;

(3) [Such] The candidate has filed a statement of intent to seek qualifying contributions. A contribution received before the filing of a statement of intent to seek public funds shall not be considered a qualifying contribution;

(4) [Such] The candidate or committee authorized by such candidate has received the qualifying sum of private contributions for the office sought by the candidate as set forth in section 11-219;

(5) The aggregate of contributions certified with respect to any person under paragraph (4) does not exceed $100.

(c) Each candidate and all committees authorized by [such] that candidate in receipt of qualifying campaign contributions which may be taken into account for purposes of public funding shall maintain, on a form prescribed by the commission, records which show the date and amount of each [such] qualifying campaign contribution and the full name and mailing address of the person making the contribution. The candidate and all committees authorized by the candidate shall transmit to the commission all reports with respect to [such] these contributions [which] that the commission may require.

(d) Candidates qualified to be on the election ballot for a special election shall not be eligible to receive payments under section 11-217."

SECTION 9. Section 11-221, Hawaii Revised Statutes, is amended to read as follows:

"§11-221 Entitlement to payments. [Every candidate who is eligible to receive public funds pursuant to section 11-220 is entitled to payments pursuant to section 11-217 in an amount equal to each qualifying contribution received by that candidate or candidate committee during the matching payment period involved. A qualifying contribution shall be attributed to a primary, special or general election.

A candidate eligible to receive public funds must obtain a minimum amount of qualifying campaign contributions as set forth in section 11-219 in order to be entitled to receive any matching public funds in an election. For the purpose of this section, a] (a) If the candidate obtains a minimum amount of qualifying campaign contributions as set forth in section 11-219, the candidate is entitled to receive for each election that the candidate's name appears on the ballot:

(1) The minimum amount of qualifying campaign contributions; and

(2) Payments of $2 for each $1 of qualifying contributions in excess of the minimum amount of qualifying contributions,

but in no case shall the candidate receive more than the maximum amount of public funds available to a candidate pursuant to section 11-218.

(b) A qualifying contribution shall be attributed to a primary or general election.

(c) A candidate must have at least one other qualified candidate as an opponent for the primary[, special,] or general election to receive public funds for that election."

SECTION 10. Section 11-222, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Each candidate in receipt of the qualifying sum of contributions established for the candidate's office may apply to the commission for public funding after the candidate has become a candidate in a primary[, special primary, special,] or general election."

SECTION 11. Section 11-223, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:

"(f) Each candidate, on the deadline for filing of a final report for any primary[, special primary, special,] or general election, shall return all unexpended public funds to the Hawaii election campaign fund."

SECTION 12. Section 11-224, Hawaii Revised Statutes, is amended to read as follows:

"§11-224 Public funds; report required; return of funds. The campaign treasurer of the candidate shall produce evidence to the commission no later than twenty days after a primary [or special primary] election[;] and no later than thirty days after a [special or] general election that all public funds paid to the candidate have been [utilized] used as required by this subpart.

Should the commission determine that any part of the public funds have been used for noncampaign or improper expenses, it shall report such finding to the attorney general and shall order the candidate to return all or part of the [total] funds paid to that candidate for a primary[, special primary, special,] or general election. When [such] public funds are returned, they shall be deposited in the Hawaii election campaign fund."

SECTION 13. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

SECTION 14. If any provision of this Act, or the application thereof to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of the Act, which can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 15. This Act shall apply to contributions falling under sections 1 and 5 of this Act received:

(1) For the election period beginning in 2002 for a four-year office;

(2) For the election period beginning in 2004 for a two-year office; and

(3) On or after the effective date of this Act contributions greater than $500 that are received after the election periods identified in this section, within ninety days of the effective date of this Act, shall be returned to contributors or escheat to the Hawaii election campaign fund.

SECTION 16. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 17. This Act shall take effect upon its approval; provided that section 4 shall take effect on January 1, 2006.